No. 1065 amending Resolution No. 1054 and amending the resolutions unbder which tax incremnent bonds are outstanding

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purposes authorized in this Section 4 and in the following order of priority. The proceeds of the Allocation Fund shall be deposited with a legally qualified depository or depositories for funds of the City as now provided by law and shall be segregated and kept separate and apart from all other funds of the City and may be invested in accordance with applicable provisions of Indiana law and the Prior Resolutions. (a) Bond Principal and Interest Account. There shall be deposited in the Bond Principal and Interest Account from the Tax Increment Revenue Account an amount of money which, together with any money contained in the Bond Principal and Interest Account, is equal to the aggregate amount of the interest becoming due that calendar year payable on all outstanding Tax Increment Bonds and the aggregate principal amount of outstanding Tax Increment Bonds becoming due and payable on the next principal payment date. No deposit need be made into the Bond Principal and Interest Account if the amount contained therein is at least equal to the aggregate amount of interest becoming due and payable on all outstanding Tax Increment Bonds during that calendar year and the aggregate principal amount of the outstanding Tax Increment Bonds maturing by their terms on the next succeeding principal payment date. All money in the Bond Principal and Interest Account shall be used and withdrawn solely for the purpose of paying the interest on and the principal of the Tax Increment Bonds as it shall become due and payable to the extent it is required therefor, including accrued interest on any such obligations purchased or redeemed prior to maturity. (b) Reserve Account. There shall be set aside on the date the Bonds are sold, from the proceeds of the sale of the Bonds, and deposited in the Reserve Account, an amount of money equal to the lesser of (i) ten percent (10 %) of the proceeds of the Bonds, (ii) the maximum annual debt service on the Bonds, and (iii) 125% of the average annual debt service on the Bonds, subject to reduction for amounts Ej deposited in the Reserve Account on such date from other sources; provided, the amount of such deposit shall be reduced to the extent that the balance in the Reserve Account would after such deposit exceed the Reserve Requirement described below. On each January 15, there shall be set aside from the Allocation Fund in the Reserve Account from the Tax Increment Revenue Account an amount of -13-